Molycorp, Inc. has announced financial and operating results for the fourth quarter and full year 2013.
The Company announced that it had achieved a significant milestone with the completion of commissioning and the operational start-up of the Chlor-Alkali plant at its Mountain Pass, California rare earth facility. That plant utilizes recycled wastewater from Mountain Pass operations to produce chemical reagents used in rare earth production.
“Putting our Chlor-Alkali plant into operation is a major milestone. Producing our own chemical reagents and reducing our water discharge will lower our costs, and this unit further reduces the environmental footprint of rare earth production at Mountain Pass,” said Molycorp president and CEO Geoff Bedford. “It will play a key role in helping us achieve operating break-even cash flow, before interest, this year.”
FOURTH QUARTER 2013 RESULTS
The Company reported consolidated net revenues of $123.8 million, a 17 percent decrease over the third quarter of 2013. The decrease in revenues was largely driven by a shifting product mix, with higher sales volumes from its Chemicals and Oxides segment, offset by softened pricing for rare earths and lower volumes of magnetic powders in its Magnetic Materials and Alloys segment.
During the fourth quarter, the Company sold 3,201 mt of product at an ASP of $38.68 per kilogram, and generated a gross loss of $27.0 million. This compares to sales volumes of 3,620 mt at an ASP of $41.18 per kilogram and a gross loss of $17.8 million during the third quarter of 2013. The Company produced 1,099 metric tons and 1,000 metric tons of rare earth oxides at its Mountain Pass facility during the third and fourth quarters of 2013, respectively. Actual production was lower than expected as a result of production interruptions while the Company continues to optimize operations, and this lower than expected production has continued through the first two months of 2014.
Molycorp reported a loss attributable to common stockholders of $197.2 million, or $0.95 per share. Adjusted loss per share of $0.28 in the fourth quarter of 2013 does not reflect impairment charges for goodwill and other intangible assets, out-of-ordinary business expenses, and certain other non-cash items.
The Company reported negative cash flows from operating activities of $64.3 million during the fourth quarter, and had $314.3 million in cash and cash equivalents as of December 31, 2013.
During the three months ended December 31, 2013, Molycorp’s capital expenditures were $44.7 million on a cash basis.
FULL YEAR 2013 RESULTS
Note: Prior year numbers exclude operating results from the Napanee facility, which is treated as a discontinued operation for comparative purposes.
The Company reported consolidated net revenues of $554.4 million, a 5 percent increase as compared to the full year 2012. The increase in revenues was largely driven by increased volume sales within its Magnetic Materials and Alloys segment, and its Rare Metals segment, slightly offset by lower realized pricing within its Resources segment. As a reminder, full year 2012 financial results included a partial year of contribution from its Molycorp Canada business, which was acquired in June 2012.
For the full year, the Company sold 13,118 mt of product at an ASP of $42.26 per kilogram, and generated a gross loss of $67.2 million. This compares to volume sales of 9,207 mt at an ASP of $57.00 per kilogram and a gross profit of $18.8 million for the full year 2012.
Molycorp reported a full year loss attributable to common stockholders of $385.8 million, or $2.21 per share. Adjusted loss per share of $1.09 for the full year 2013 eliminates the effect of operational expansion items, out-of-ordinary business expenses, and certain other non-cash items.
The Company reported negative cash flows from operating activities of $154.4 million during the year. Capital expenditures for the Company on a cash basis for the full year were $379.3 million. For the full year ending December 31, 2014, the Company estimates that its capital expenditures will total approximately $85-$90 million.